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The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

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Us 17, Washington 11, Boston 9, U.s. 8, Kudlow 7, Pakistan 6, Chicago 5, Ackman 5, United States 5, Jeff Bezos 4, Osama Bin 4, Soros 4, Ramadan 4, New York 4, Al Qaeda 4, Geico 3, Peter King 3, Jackie Deangelis 3, John Henry 3, Michigan 3,
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  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    August 5, 2013
    7:00 - 8:01pm EDT  

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it' i like to say there's always a bull market somewhere. i promise to try to find. the terror threat is real, the planned attacks are massive and the u.s. embassies are staying shut down for another week. that's what several u.s. sources are saying about an alleged al qaeda plot against u.s. interests in the middle east and africa. one source says al qaeda is back and stronger than it was before 9/11. after the bell stunner, jeff bezos buys "the washington post"
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for $250 bucks. and the bankrupt city of detroit starts the process of putting its priceless museum artwork up for auction. you wouldn't believe how much it could be worth. all those stories and much more coming up on the "kudlow report" right now. good evening, i'm larry kudlow. this is the "kudlow report." first up tonight, breaking news, jeff bezos paying $250 million for "the washington post" newspaper. a few days ago boston red sox owner john henry bought the "boston globe" for the bargain basement price of only $70 million. what is going on here? why will these foes succeed while others have failed. joining us is our own julia boorstin. why will they succeed where others have failed in.
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>> i think the question is how do you define success? one thing jeff bezos makes very clear in his letter about this and it was also in the press release is that he's not investing this just as a financial endeavor but he sees this as supporting journalism. he says "i understand the critical role the post plays in washington, d.c. and our nation and the post values will not change." he talks about the importance of the fact that the internet has changed every part of the news interest and it needs to expand and innovate. he has a lot of success using technology to transform the distribution of content. it will be really interesting to see how he applies that approach to newspapers and to the post. >> no question bezos is a digital genius. they're losing advertisers and they're losing readers to the internet. how does the paper newspapers stay alive? i make the same -- i asked the
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same question up in boston for the "boston globe," which john henry has bought for an incredibly low price. there's a reason he got an incredibly low price. nobody seems to want paper newspapers anymore. >> reporter: well, the one thing that is working is digital subscriptions. the digital advertising business is still facing a lot of challenges as we saw with the "new york times" company results last week. we are seeing success with digital subscriptions like the wall street journal offers. it will be interesting to see how much or what bezos decides to put behind a pay wall or if he looks for other additional means of monetization. video ads are a lot more profitable than regular display ads. >> bezos is doing this for his own account; is that correct? >> yes. is -- this is not connected with
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amazon. he's paying this out of his own pocket. >> so he has deep pockets in order to experiment? >> reporter: yes, he said he thinks there is a need to invent and experiment and he talks about the potential to do that with "the washington post". he definitely has deep pockets. this $250 million is a tiny fraction of his networth. >> the what about the "chicago tribune" and the l.a. times, the trib company. is that next? >> reporter: i think that is exactly what's next. i think the question is whether they're willing to split up those papers or if they'll insist on selling all of those newspapers to the in a bundle. >> we'll leave it there. julia boorstin, thank you very much. we appreciate the update.
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>> next, growing concerns about a terrorism attack. the u.s. embassies that are now closed will stay close all week. nbc news stevesteve handelsman us. >> the global alert for american travelers will persist. no confirmation here about the biggest news in this story, confirmed by nbc news today, that in fact what sent off this alert was communication intercepted between the world's two top al qaeda commanders. on the one hand, presumably in pakistan, al qaeda central, what's left of it anyways. number one, ayman al zawahiri,
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the long-time number two to osama bin laden, communicating with an organization that's considered even more danger, nasir al wahsyshi. he's experimented with exploding clothes, clothes impregnanted with explosives, not to hide bombs but clothes that are bombs. but this isn't about an exploding shirt. this is said to be, according to sources that talked to nbc news, something big, that the head of al qaeda ordered to do something at the end of ramadan and that's now. when they talked about that, larry, the u.s. government listened and that's what kicked
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off the biggest alert since 9/11. >> steve handelsman over the weekend, congressman peter king, very knowledgeable guy, he said they picked up specific dates, specific dates. do we know anything about that? >> reporter: what we're told, larry, is that the conversation, and it may have just been one, it's such big guys and they so avoid communicating and if there was just one conversation it's because of they communicated and because of who they were. and the communication we're told specified the end of ramadan. that was yesterday. but of course ramadan is a period of time and so now it could be considered the ramadan. representative king is wired in, but the best information nbc news has is around now. the question is where and how and that's what u.s. intelligence says it does not know, which is why all these embassies are on alert and
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american travelers are told to be extra cautious. >> thanks. steve handelsman, we appreciate it. the severity of this global terror threat cannot be underestimated. it's clear al qaeda is not on the run, despite of what president obama has previously told us. >> now we have a new tower rising above the new york skyline and al qaeda is on the path to defeat. >> we've been able to decimate al qaeda. al qaeda has been decimated. >> so much for political hyperbole. now today white house press secretary jay karn ecarney reit the core of al qaeda remains greatly diminished. doesn't the core response to this threat request suggest otherwise? we have commander general wesley
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clark, former ambassador to the u.n. security council rich williamson and former deputy to the secretary of defense william brooks. let me go to you first, general. they narrow it down to zawahiri and al wahayshi on the peninsula. to your thinking what's the significance of that? >> first of all, we caught these guys talking so more is going to happen. secondly, we have closed embassies, positioned forces, probably done a lot of things we don't know about to get ready. by taking overt action, maybe we'll either defer the attack or force them to tip their hand and we'll preempt it. so i think it's a good decision by the administration to call the alert and i -- obviously we had some good intel and we acted on it. >> rich williamson, let me go to
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you. people are saying and this is from some insiders like peter king and other people from the intelligence community and the nsa and so forth, people are saying this is the most chatter that we've picked up since 9/1,1 actually since before 9/11. what does that mean? >> i think there are three points that need to be. one, clearly the presidential campaign of barack obama was false in saying that al qaeda was degraded two, the speech in may declaring the war on terror over was wrong. three, after benghazi, they don't want to keep the same mistake to keep americans in harm's way. four, as wes indicated, we've got good intelligence, but this is a tough, difficult business of engaging in this war on terror. the administration is taking the right kind of precautions. but we have to hold our breath and we have show we're not
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disengaged and that is a pattern that has to change with the u.s. government over the last couple years. >> peter brooks, is the government of pakistan or at least the secret service of pakistan giving al zawahiri all kinds of comfort and help and you think they're giving him resources for his campaign against the united states? >> no, i wouldn't say so, larry. and obviously we should be concerned if al zawahiri is in pakistan like osama bin laden was. actually, the al qaeda terrorism threat has moved well beyond pakistan into other parts of the middle east, africa. i mean, it's really, really a problem. so i wouldn't focus on pakistan at this point. obviously getting al zawahiri is important but it's just like osama bin laden. we're in a post osama bin laden era but we're not in a post-al
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qaeda era. so you have to focus on the real problem -- >> but let me make this point. al zawahiri maybe not in deploying assets, but he sounds like he's the brain behind this campaign. it sounds like his control is incredibly important to the extent that they're picking up cha chatter, that's he's telling al qaeda in the arabia peninsula what to do. his importance cannot be underestimated. >> i agree but he's not osama bin laden in the same sort of iconic sense that osama bin laden was such a leader. al zawahiri is a much less figure -- a much more diminished figure than osama bin laden. it is important obviously the u.s. government made these unprecedented steps to shut down these embassies because the new head of al qaeda and the arabian peninsula is actually a protege of zawahiri. i think we have to keep our eye
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on the ball here and it's al qaeda in the arabian peninsula and proliferation of the al qaeda cells. in iraq, 3,000 people killed since april. a lot of that related to al qaeda, syria and north africa. >> that's just where i was going to go. no, no, it's very important. general clark, i want to go there. we can talk about a saudi arabia peninsula and al qaeda there but you've got this diffusion, people say being this is the new al qaeda and it's diffusion, it's not centralized anymore. here's the united states giving weapons to libyan rebels, to syrian rebels, as peter said also to iraqis. those weapons are all over the place and there's no telling who has them and there's no telling whether al qaeda has them or not. >> right. and most of the weapons probably didn't come from the united states. we know that gadhafi had lots of stuff, a lot of it got loose, especially in benghazi and there's no telling where it went. but one thing about all the
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central coordination here is that for to us pick up this kind of intelligence as what's been quoted in the press, go hit 'em and hit 'em sunday, that is unprecedented breach of operational security by the very top leaders of al qaeda. they know we listen to everything. they have been hyper sensitive. when you see that kind of communication coming out, unless we've now gotten mind readers or something, if they're communicating like that, there's a breakdown in their system. so, yes, al qaeda and the arabian peninsula is dangerous, people are worried about the scale of this. we're certainly worried about all these terrorist who is have been sprung from jails in several different countries and that's a long-term threat for us. but the indicator from the intel is that the operational security discipline is not as tight as it was in al qaeda. >> but, wes, you're the expert. i just want to say is it
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possible, is it possible that these al qaedas are doing this deliberately, sending us down the wrong road? >> yeah, it is possible. of course, they'd like to play with us. and maybe they did this just to see if we were listening and to check our system in some way. but that's okay because we're fighting back on multiple levels. we fight back on the public affairs level, on the covert action level, we fight back on the technical level against them. so we don't know from here everything that's going on behind the scenes in the united states government. so if that signal was sent to somebody, there's lots of stuff being watched right now. >> all right, rich williamson, i want to hear you on the last word. peter king yesterday and others, they said, yes, it looks like a middle eastern problem, wherever the attack is going to be. but no one's ruling out an attack on the united states and no one is ruling an attack on western europe. your thought ambassador williamson. >> the lesson of the last 20
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years is american assets can be attacked whether it's the "u.s.s. cole," embassies in ken kenya, tanzania. american assets aren't only in the continental united states. and in benghazi. so we have to be adapt, the mets an -- metastasizing of al qaeda. as we've seen there is a hot house of growing terrorist who is have a different world view, who look at the united states as enemies and they're targeting us. we have to be vigilant, creative and consistent in confronting them. >> let's hope our intelligence and surveillance is as good as it sounds. >> thank you. appreciate it. folks, let's talk some business. the stock market is reacting to
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"the washington post" news, up 2% after the break. we'll talk about that and some other key market news items just ahead. doesn't forget, folks, premarket capitalism is the best path to prosperity. and today even the imf singled out the french for their high taxes, high regulations and impossible labor laws, the "kudlow report" wants a purer version of capitalism to grow this economy. i'm kudlow. we'll be right back. a-a-a.
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the dow had its worst day in more than a month, closing down 46 points. let's talk about the big news after the bell. jeff bezos went out and bought "the washington pos "the washington post." we have jim killberg and jeff euro. jeff, the stock went up 2% after trading. from the standpoint of an investors, what magic can jeff bezos do to "the washington post" that hadn't been done before? >> larry, i think the question is what imagine kick he not do? he's amazing. i think he is the magic man and
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i think he dipped his toes into the media space back in april with the business insider investment. i think he has a conduit to a larger platform here. maybe the "chicago tribune" is next in the pipeline but with his table one entity, that's one of the entities that comes with this purchase of "the washington post." now he has access to western states, midwestern states, as well as southeastern states. i think there's a bigger picture at play. he focusses on customers being first but always has a long-term plan laid out. get ready, he's going to do something special. >> jim, did you buy the stock? >> no, not yet. everything has a price. remember a couple months ago when hewlett packard was trading down 11 or 12, the market said there was a new paradigm away from old world technology. well, the market got ahead of itself and priced it too low and eventually people realized there's value. jeff bezos realizes 250 million
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is chump change for the brand. yes, subscriptions are down but he'll realizes where they lag is in digital, their strength is in digital, this is probably a good and very symbiotic relationship. for a guy whose net worth is $225 billion, it's probably -- >> i jump in there and give him something to think about? >> yes. he can take that, i've seen it. >> this isn't a trophy prize for him. he has a strategic plan in place. he's been after this media space for quite some time. and amazon you, can't value that company. >> there's no doubt about it. but when he was asked if he had a plan, his ann was pretty much, no, i have no plan at this point in in time.
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>> he keeps it close to the vest. >> warren buffett has about $1 billion sunk into "the washington post" company. that's an interesting sideline. john henry, the owner of the boston red sox, i believe he's in the hedge fund or investment business. now, he got the "boston globe" for a song, $70 million. the "new york times" originally i think paid $1 billion. what are they going to do in boston that they haven't already tried? and how can the "new york times" survive losses like the one they've just taken? >> is that for me? >> yes, sir. >> because in boston -- remember, in chicago we saw the sports franchise own the newspaper for 25 years and that worked very nicely. so when john henry bought that, i thought that's great, he can pump his baseball team with the "boston globe," everybody wins. the other thing, they're hemorrhaging money because they're shifting. it seems everything is going to sell out because particularly some of these family-owned
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publications, they've seen in the past "newsweek" selling for $1. they probably think get out while they still have something in it. >> today bill ackman mild an s.e.c. complaint against george soros. ackman thinks soros, icahn and others are ganging up on him. soros is telling him he's going long. what's your thinking about that, jeff? >> i think ackman is just being a sore losing here. let's be honest here. year to date herbalife is up 95%. he presented this publicly, this short position and went to a big, elaborate stage in the
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media to present this. he's got to wear this one, larry. he's not doing great job of ownership. it's time to move on. >> to put a finer point on it, too, ackman has had some very well known short position that went in his face for years. i'm thinking of mbia ten years ago, if my memory is correct and i believe that it is. he doesn't care that it's gone against him. what he cares about is he's being bullied by ackman and soros. it seems that pride is winning out for a reason. >> there's a lot of talk in the news obviously about insider trading with steve cohen and what not. as it's been described, maybe i'm wrong, but as it's been described, soros' people have these idea meetings, quote unquote, idea meetings. they have them with other hedge funds. now, is that not a collusion? is that not some form of insider trading? could it be stretched to that? i never really heard of idea
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meetings where tprincipals are telling the other guy what is to do. >> in chicago we call that grabbing a beer after the bell and collaborating. it's not strategically saying you are going to corner the market -- >> how do you know that? how do you know that? >> i don't. >> people are saying he did the same thing in 1980 with the bank of england. how do you know that? i'm just playing devil's advocate. >> go ahead, jimmy. >> he knows exactly what to say at these meetings, it's solidly in the gray area. they talk in nuance but they all know what they're saying. is it insider trade? my guess is certainly not. >> you reckon ackman will go nowhere with this s.e.c. letter? >> no. >> thank you very much. as always, we appreciate it.
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now, big suspensions in major league baseball finally handed down today. jackie deangelis has the story for us and much more next up on the "kudlow report." i'm gonna have to ask you to power down your little word game. i think your friends will understand. oh...no, it's actually my geico app...see? ...i just uh paid my bill. did you really? from the plane? yeah, i can manage my policy, get roadside assistance, pretty much access geico 24/7. sounds a little too good to be true sir. i'll believe that when pigs fly.
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jackie deangelis has the story. >> major league baseball suspended a-rod 211 games. he will appeal and will be able to play for tonight against chicago. the yankees would still owe him $81 million for 2015 through 2017. 12 other players also suspended today for receiving performance-enhancing drugs from the biogenesis clinic. time warner and cbs are still fighting and millions are still without cbs for the fourth day. time warner is offering to let cbs set its own price and collect all the fees and customers could decide whether they want to pay. the so-called ala carte model will be unprecedented. and apple can keep selling certain old are ipads and iphones after the obama
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administration overturned a rule big the international trade commission. the itc said apple products infringed on samsung's patent. the last time we saw it when president reagan did it in favor of samsung. >> thanks, jackie deangelis. >> it's becoming unanimous. private sector and public sector unions don't want obama care. even though they worked hard to get it passed in the first place. here's the question, what do they want now that they know for them it's a real bad deal? we're going to ask a union member and a big union supporter to tell us next up on kudlow. ♪ [ male announcer ] you wait all year for summer. ♪
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welcome back to the "kudlow report." i'm larry kudlow. in this half hour, detroit, a fine art hub, who knew? apparently the folks at kristy's auction house knew and now the bankrupt city is officially asking the art experts to appraise the collections at the city's institute of art.
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you wouldn't believe the prized master pieces that could be soon on the block. and what about all these people running for mayor? how do they plan to keep new york city from following detroit into bankruptcy? one of those running joins us tonight. but first front page story in today's "new york times" describes how the obama care cadillac tax is going to make union health care a lot more expensive with fewer benefits and different doctors. so why are the unions complaining now? they wanted this in the first place. and they worked hard to get it. joining me now from washington is phil dine, a labor expert and officer of the union and also with me is a member of the
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union. phil, now you're going to get a cadillac tax that's going to make all your health care far more expensive, you're not going to be able to afford to do it, you're going to lose your doctors and you're going to be dumped into the public exchanges. is that what you wanted? >> well, good evening, larry. i don't think this is any surprise for labor. labor did support by and largele health care plan, but it raised these issues early on. and it thought that they would be resolved. and i think where the problem is is that labor feels the obama administration has not resolved the issues and now here we are. >> i got a little different explanation. i think they assumed that they would get a gimme, a waiver, a special favor from the administration, which is very pro-union. that's why jimmy hoffa and some of these others are now writing hate mail to the white house.
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they expected to get special favors, they're not going to get special favors and now labor is hoisted on its own petard, it's going to have to eat its own cooking. >> i don't know if you and i differ that much in what we just said. i didn't say how it would be resolved. i think labor thought that the administration would deal with this in some way, shape or fashion and it really hasn't. and now there's a problem. and i do want to push back a little bit. this was not labor's legislative priority. what labor wanted the obama administration to do is what it said it would do when he was campaigning, which is get the employee free choice act implemented. he had co-sponsored that as a senator. that was their priority. they went along with this partly because they favored it, partly because they wanted to then have him move on. >> brian, set us straight. what does labor think it wants right now? >> you say labor. there's two different groups. you've got the union bosses who
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try to dictate to all the workers what we should do, who we should vote for and what liberal policies we should support and then you've got conservative union members like myself who up until recently were forced to belong for a union if we wanted to work for companies like ford, gm or chrysler. recently we passed right to work legislation in michigan and now the labor bosses are going to start hearing from union members like myself. we don't like being told we should support candidates like barack obama, we don't like government-sponsored health care that's going to cost us more and reduce our doctors. now if i resign, i'm able to take my union dues with me. maybe the union will start listening us. >> the president basically said in addition to what you just said, he said you'll never have to change your doctor, you'll never have to change your health plan. >> he lied to us. >> you know what this cadillac
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charge is going to do, it's going to lead to dumping on a massive scale, especially public unions like detroit, i don't know how many other cities like chicago, they're all going to be dumped right on to the so-called insurance exchange, most of them aren't created, that's what's going to happen. >> detroit's in chapter 9 bankruptcy partially because unions have been in bed with tax-and-spend liberal democrats for decades. they bankrupted the city and their policies are not good for workers, they're not good for taxpayers. we need to start throwing the union bosses overboard and let the more conservative voices in the union, there's about 40% of us who belong to unions that are conservative, have a voice in our unions and start reforming them so that they'll deal with republicans, conservative republicans as well as tax-and-spend liberal democrats. >> phil dine, what's your
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first of all, labor boss ses is headline term. i wouldn't apply bosses to someone who was elected and can be thrown out of office. >> bob king wasn't elected by me. >> let me finish. if you don't like them, diselect them, throw them out the next time. >> we don't get to vote on them. >> everybody gets to vote on labor leaders, even the teamsters now for 20 years. >> only the other leaders. >> that's not the case. secondly, nobody is forced to belong to a union. that's a supreme court decision. the beck decision says -- >> that's nonsense. that's nonsense. you're trying to mislead the viewers right now. you can resign from a union but you still have to pay them a service fee or an agency fee. >> i'd like to fin, my sentence. i did not interrupt you. and i respect what you're saying, you have a right to say it but here's the counterargument. right to work simply forces unions or allows unions to work
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for free. >> nonsense. >> right now workers can say i don't want to belong for a union and you pay a fee for reputation because you get the contractual benefits, the pension, the raises, the day off, the safety. otherwise what would happen is people would not pay a fee, unions would have to work for free and they'd go out of business. >> i don't understand -- wait a second. there's a very interesting mechanics about right to work but what i do not understand, the union movement, the leadership of the union movement was virtually and i believe completely, unanimously behind the obama, pelosi, reed obama care. >> that's right. >> and they knew, it was in the committee print, they knew because the obama health care experts from the ivy league wanted to cut costs by slapping on this cadillac tax. the old taft hartley trust fund shared by employers was also knocked out by this, too.
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so they knew that they were misrepresenting the rank and file all during that period. and if they didn't know, they should have known and should have been voted out of office. that's the thing i don't understand. >> absolutely. >> now it's too late. the whining is too late. brian, what's going to happen here? is there going to be a revolt? >> i'll tell you what, we're trying to start a revolt here in michigan. a good friend of mine and fellow ford worker, terry bowman, started an organization called union conservatives. we've got people joining nationwide to bring conservative voices to the front inside the unions to reform them from within. i'm sponsoring a town hall meeting the day after labor day in utica, michigan here. i'm flying -- paying to have a labor lawyer flown in to virginia to explain how the new right to work law will affect union members. we're not getting that information from our union bosses. they want to keep us ignorant and mislead us so they can tell
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us what to do. >> phil dine, thank you. brian pannebecker, we are flat out of time. we'll take it up another time. >> speaking of unions, republican mayoral candidate joe lota is about to join us. by the way, when is anthony weiner going to drop out of the race? that's next up on kudlow. [ male announcer ] come to the golden opportunity sales event to experience the precision handling of the lexus performance vehicles, including the gs and all-new is. ♪ this is the pursuit of perfection.
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but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship. that's why i stopped working at the old brokerage, and started working for charles schwab. avo: what kind of financial consultant are you looking for? talk to us today.
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now, is new york city going to go as broke as detroit? new york candidate for mayor joe lota saved as deputy mayor under rudy giuliani. welcome back to the program. up got no contracts, over 300,000 municipal workers and virtually all of them on health benefits pay nothing out of pocket, nothing out of pocket. that's the worst i've ever heard. >> all 153 collective bargaining units are without a contract. what i'll do, the day after i'm elected, i'll sit down with the unions and begin the negotiations. i did it in the giuliani
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administration, i'll do it now as mayor and make sure we have fair wages going forward. all the unions want retroactive pay. that's not going to happen when i'm mayor. >> what about the cadillac tax? can you use that as a club? they're going to get hit by it, 2018. >> you could use it as a club. the health care cost, everybody should pay for their health care. it really should be part of the package that goes in. >> a lot of other cities, the co-pays are like 20%, 20%. new york is about zero. >> it's about zero. those who do pay, they pay about 1%. we need to make it the number one issue on the table they have to participate in their health care. >> good luck on that. let me ask you a couple quick lightning round. what's the biggest difference between you and john? >> i've got a broad base of experience in the private sector and public sector having been
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deputy mayor for giuliani. most importantly, havei have a vision going forward for the city, making sure the city could grow the way it's growing now pip want that to continue. >> how far would you lower taxes? >> there are a couple of taxes i want to get rid of right away. we tax capital in new york city. in a city that should be all about capital formation, we tax young companies when they don't have any income, we charge them a capital tax. i want to lower and begin the process of eliminated unincorporated business tax and the corporate rent tabs bex. we have a tax on a tax. >> and the ray kelly crime. do you support stop and frisk? >> i do support stop and frisk. >> will you keep kelly on as police commissioner? >> i have said it publicly.
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if ray doesn't want to stay, hes going to be on the transmission committee to help me find the new police commissioner. >> there ought to be some dignity to the race. surely, surely. let me ask you, anthony weiner, what's he doing in the race? >> look, everybody has an opportunity to run. kwai honest quite honestly, i'm going to focus on only the issues -- >> you could run against him. if that's the case, would you say -- >> no, i'm going to win. >> you wouldn't raise his various sexual ventures? >> the last thing new york needs is a person for mayor who is undisciplined. >> another one running for comptroller is eliot spitzer. different story, i don't know if it's worse but it probably is worse in terms of physically and morally. should he be in the race?
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>> i think new yorkers should have a voice to vote up and down anyone they want. there's nothing in eliot's background to leads him to be in the role of comptroller. >> who is your toughest opponent if you win the republican primary? >> they're all going to be tough. bill thompson could be tough, christine quinn can be tough. they can all be tough but i've got a strategy to beat them all. >> all right, you heard it, joe lhota, mayoral candidate. >> when you think detroit, do you think van gogh, matisse, diego rivera? well, you should. the city of detroit is home to many of those famed artists.
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we have the latest on the detroit art fire sale next up on kudlow. you know, that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.
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when you're bankrupt, you need to sell your assets. detroit may be starting that by hiring christie's to appraise the item at the detroit institute of art. cn cnbc's own robert frank joins us now with all of the art details. >> detroit's emergency manager hired christie's to assess the
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collection of the dia. the art is valued by many at over $1 billion. while there is no specific plan to sell the assets, the move was taken at the request of creditors. he said the city must know the current value of all of its assets, including the city owned check at the dia. orr's statement goes on to say there has never been nor is there now any plan to sell the art. this valuation as well as the valuation of other city assets is an integral part of the restructuring process. he said they will also advise the city on non-sale alternatives. not sure what that means. they will value works like this one, a van gogh portrait that could be worth over $100 million alone, it includes works of picasso, miguel. they say they will continue to folks on being as positive force for the city.
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this has been a huge controversy with some of the public pensions saying they want it sold and cultural groups and arts groups saying it has to be preserved. it's going to be a long fight. >> how are you betting on right now? >> i think legally it's going to be a hard to break that trust. a lot of people gave things to the collection with the understanding it would not be sold. $2 billion is not going to solve their problem but it would help. >> the detroit institute of arts is a big deal. it's a famous museum, people go there. say detroit recovers sometime in our lifetime, you would want a major museum, wouldn't you? >> absolutely. and in the short term, this could be a quick fix, could put money in the hands of creditors. if you want to rebuild detroit
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and there's a large group of young, artist being smart people moving directly around that area, if you want to keep them and grow detroit, you need that center. they have an amazing collection on a national level that if you want to grow detroit, you should keep it. again, it's going to be the pensions versus the cultural grou groups. >> i don't know why they don't just sell the land assets. they don't need the land. nothing is happening on the land except a bunch of beaten up houses or nothing. sell the land assets. >> i think that's a great alternative. we do know, however, that the art market is so hot right now. there are two van goghs there that could together fetch more than $400 million just for two paintings. so there's going to be a lot of pressure art versus land and any other assets they have. nothing is going to compare to these paintings. >> all right, we'll leave it
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right there, robert frank. we appreciate it. >> no question rob certificaert those pictures are worth a bloody fortune but it's a legacy thing for detroit. let me go back, sell the land. i repeat, my supply side theory, make detroit a tax-free enterprise zone. i'm kudlow. we'll be back tomorrow night with more free markets. in a world that's changing faster than ever, we believe outshining the competition tomorrow
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[soft piano music] ♪ [snapping photos] ♪ (female #1) wanna do one on his lap? ♪

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